DC Strategy case study/franchising | Funk Coffee and Food

Mobi Access Careers

Funk Coffee and Food
14 Dec 2009

Article PDF ( 621KB)

The Business

Funk Coffee + Food has a clear strategy; to target corporate offices and white collar workers in concentrated business disctricts. With a focus on quality coffee and food and a stylish design, Funk Coffee + Food cafes are a must for the urban white-collar worker.

Established in 2005 in Adelaide, Funk Coffee + Food boasts an exceptional retail concept, proven by its growth to date. The Funk brand is, well, Funky; reinforced by cheecky marketing and bold outdoor advertisements. Considerable thought has gone into every aspect of the business' operating procedures and processes. The cafes are open five days a week, excluding public holidays and require minimal food preparation on-site. The business is well positioned to attract quality business partners and continue its exceptional growth trajectory.

The Challenge

Funk Coffee + Food had four well established stores in Adelaide's CBD. National growth aspirations demanded the Funk experience be packaged in a way that could be scaled over a network Australia wide. Central to the growth plans was the need to leverage the strengths of the business and overcome capital and human resource issues. The key challenges facing Funk in achieving their objectives were to determine:

The key aspects of the current Funk business to be maintained in the growth of the network
The optimal business model to achieve further growth in the Adelaide market
The interstate rollout strategy, considering the costs to Funk, with a focus on maximising the brand impact in new geographical regions
The organisational structure, systems and processes to manage and support the growth of the network

The Solution

Funk Coffee + Food's management team had clear ideas and aspirations but did not know how to turn those aspirations into reality. DC Strategy was engaged as a specialist consultant to help achieve these goals.

The program focused on a full franchise program which developed the franchise proposition, systems and commercial engagement model. In addition to franchising as a growth strategy Funk now has a very clear idea of the ideal mix of company owned stores and franchise locations. This strategy enabled Funk to achieve its growth objectives and maintain a high level control over the growth of the brand.

The project involved an assessment of the franchise business model and addressed the organisational issues associated with successfully growing a significant national network of franchised and company owned stores.

The Outcomes

Funk Coffee + Food is now well positioned to bring its simple, funky brand and concept to office precincts throughout Australia. The project produced a number of outcomes for Funk including:

A defined business proposition that can now be put to potential franchisees with confidence
A national growth plan for franchise and company owned stores
A prioritisation and entry strategy into new states
The optimal organisational structure to support the growth plan
Documented operational procedures to assist not only franchisees but to ensure the network is scalable and robust